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German car manufacturer Daimler became the first foreign corporate to sell Chinese onshore bonds, so-called panda bonds, in March. But lawyers believe that unfavourable pricing will limit future deals.

Europe’s cov-lite frenzy could have a similar effect The growing number of covenant-lite (cov-lite) loans in Europe has prompted the question of whether the market could cut into the cov-lite deals that are completed in the US. With the number of these deals growing internationally and covenants increasingly disappearing, a second question about shrinking space between cov-lite loans and bonds is also in need of an answer. Leveraged loans in the US traditionally provided less protection than their European counterparts. This helped to attract business across the Atlantic for so-called Yankee deals. A more active capital markets sector made banks comfortable that they could sell the loans on. US cov-lite deals, which disappeared after the 2008 crash, have been making a comeback over the last two years.

Australia's regulatory capital bond market is among the most sophisticated globally. And while a framework has been established for Additional Tier 1 (AT1) offerings, more innovation is expected in Tier 2.

Privacy concerns still hamper the re-proposed rule The reopened comment period for Regulation AB II closed on March 29. But issuers and investors continue to clash over the level of disclosures in asset-backed securities (ABS) offerings and its potential ramifications. The wait for the new regulation had been extended in February following the Securities and Exchange Commission's (SEC) postponement of a vote and request for further comments addressing privacy concerns.

If Myanmar is to attract listings, it must learn from its neighbours and not over-regulate its capital markets. Bourses in Cambodia and Laos are hampered by low liquidity and investor interest because not enough companies have floated on their respective exchanges.

A hands-off approach is the best mitigant. But is it realistic? The European Commission (EC) has held a Goldman Sachs-sponsored fund jointly liable for a portfolio company's cartel infringement. It's only the second time Europe's antitrust authority has pierced the corporate veil of a company owned by a private equity (PE) fund and imposed liability on its financial sponsor.

Is the US leverage ratio still just a backstop? On April 8 the US Federal Reserve issued its final ruling on the enhanced supplementary leverage ratio (ESLR) for the country's eight largest lenders. The two percent increase over the Basel recommendation has banks considering ways to adjust their portfolios, with the possibility of adding risk to maintain profitability. The final rule is not a deviation from the proposal, but is still unwelcome and could impact banks' global competiveness. The eight largest banks will now be required to meet an ESLR of five percent from 2018 and subsidiaries are recommended to have a six percent ratio.

Four months after the final Volcker Rule was published, one question still looms large: will banks implement the proprietary trading ban globally, or will they try to make use of the loopholes.

Steven Francis, Baker & McKenzie Germany's legal market saw a fair amount of activity in the past four weeks. Berlin, a city which, as a burgeoning hub for domestic high-tech start-ups and the home of the government, has enticed Berwin Leighton Paisner, Herbert Smith Freehills and Morrison Foerster into establishing a presence there recently. In March, however, KING & WOOD MALLESONS SJ BERWIN revealed it would be leaving the city. Two of the office's three partners, Frank Vogel and Jan Dirk Heerma, are departing the firm to launch a venture capital boutique. Early this month, Eversheds German arm, HEISSE KURSAWE EVERSHEDS announced it would be launching a base in Germany's capital while simultaneously confirming that the two firms, which currently function as an association, were discussing a merger and full financial integration.

High yield, securitisation and retail structured products are all emerging in Europe’s capital markets boom. Here are the challenges facing the instruments